Summary: How the Mexican Peso Stacks Up Against Other Latin American Currencies Versus the Dollar
Wondering whether the Mexican peso is holding its ground or wobbling compared to other big Latin American currencies like the Brazilian real or Argentine peso? This article dives right into that, using practical data, real screenshots, and even a few personal mishaps while tracking currency markets. We'll compare key factors, look at case studies, and break down how "verified trade" standards differ in the region—the human way, not with jargon overload. Expect chart snippets, regulatory references, and a few candid asides along the way.
Answering: Is the Mexican Peso Relatively Strong or Weak vs. Other LatAm Currencies?
Let's get straight to it: you're here because you want to know, in plain English, whether the Mexican peso is weaker or stronger against the US dollar compared with, say, the Brazilian real, Argentine peso, Chilean peso, or Colombian peso. Maybe you're exporting, traveling, or just geeking out over macrotrends. Either way, the real-life answer is… complicated, but that's good news, because that's where stories, charts, and coffee-fueled Google Sheets sessions come in.
Step 1: Pulling Real Data—And Sometimes Tripping Over It
First time I tried to compare these currencies, I landed on xe.com’s historical currency tables. Simple, right? Turns out, the columns don’t always line up if you’re toggling timeframes. (Silent shoutout to my messy “April 2024” Excel where I mixed up Colombia’s and Chile’s codes.) But if you want to see how four or five major Latin American currencies have fared against the USD over, say, the last five years, that's your best starting point.
- Mexican Peso (MXN)
- Brazilian Real (BRL)
- Argentine Peso (ARS)
- Chilean Peso (CLP)
- Colombian Peso (COP)
I took snapshots of these currencies versus USD in early 2019 and compared them to April 2024. Here’s what stood out:
| Currency | 2019 rate (USD) | 2024 rate (USD) | % change vs. USD* |
|---|---|---|---|
| Mexican Peso (MXN) | 19.15 | 16.90 | +12% |
| Brazilian Real (BRL) | 3.70 | 5.10 | -27% |
| Argentine Peso (ARS) | 38.95 | 872.00 | -96% |
| Chilean Peso (CLP) | 675 | 890 | -24% |
| Colombian Peso (COP) | 3,200 | 3,950 | -19% |
*Negative means depreciation vs. USD, positive means appreciation
Step 2: Why Is the Mexican Peso Outperforming?
Yep, you read that right—the Mexican peso not only withstood the USD but actually appreciated over the past five years (2019 to 2024). “The strength of the peso is surprising even to veteran traders,” says Reuters, quoting analysts from Banorte. There are a few reasons for this, but to keep it simple:
- Strong inflows – Mexico benefits from high remittances, foreign direct investment, and stable exports linked to the US.
- Central bank policy – Mexico’s Banco de México kept interest rates high and inflation relatively under control compared to neighbors.
- Nearshoring – With tensions between US and China, more companies are moving supply chains to Mexico, supporting the currency. [WSJ]
- Political stability – Even amid domestic disputes, Mexico has avoided the massive financial shocks seen in places like Argentina.
Contrast that to Argentina—hyperinflation, deep debt, political uncertainty, strict capital controls, and frankly too many midnight finance decrees. Brazil and Chile had their wobbles, especially post-Covid. Colombia, while better than Chile or Argentina, didn’t quite attract the same investor confidence.
Above: MXN/USD trend since 2019. Source: xe.com
Step 3: A Quick Real-life Example—Trying to Hedge Payments
Back in early 2023, I helped a friend (let’s call him Juan) settle a B2B payment from Brazil to Mexico. He figured the real (BRL) might bounce back, so he held off a few weeks—just in time for Brazil’s volatility to spike. What happened? The real dropped, while the peso held on or even strengthened. He ended up paying 8% more than he expected. “If you’re betting against the peso these days, you need nerves of steel,” Juan said in a WhatsApp. Lesson: recent data can teach you more than years of currency theory.
Step 4: Understanding "Verified Trade" Standards Across Countries
When you look into cross-border certified or "verified" trades (think origin certification under free trade agreements—crucial in currency impact on trade costs), there are interesting differences in standards and execution.
| Country | Name of Standard | Legal Basis | Enforcement Body |
|---|---|---|---|
| Mexico | T-MEC/USMCA Certificate of Origin | USMCA/T-MEC, Chapter 5 | SAT (Mexican Tax Authority) |
| Brazil | Mercosur Certificate of Origin | Mercosur Protocol | Receita Federal |
| Argentina | Mercosur Certificate of Origin | As above | AFIP |
| Chile | Pacific Alliance/Various FTAs | Pacific Alliance FTA, Chapter 4 | Servicio Nacional de Aduanas |
| Colombia | Pacific Alliance/Andean Community Certificate of Origin | Andean Community Decision 416 | DIAN |
References: USTR FTAs, WCO, OECD
Step 5: Industry Expert Take—What Do the Pros Say?
At a regional trade conference in 2023, I heard an HSBC FX desk officer say: "Frankly, we’re seeing much more dollar liquidity in Mexican peso trades than any other LatAm pair except maybe the real. But the structural stability in Mexico is light years ahead of Brazil or Colombia at the moment."
And pointed out by the IMF’s April 2024 Outlook: “Mexico’s robust external accounts and currency resilience contrast sharply with hyper-volatile economies. Continuity in trade verification and clear administrative processes make the peso more attractive for international transaction settlements.”
Case Study: Mexico vs Argentina on Free Trade Certification and Currency
To see how this plays out in the real world, look at a 2023 dispute: A Mexican electronics exporter got delayed payments from an Argentine buyer due to problems with Mercosur’s stricter origin verification demands and ARS's extreme controls. While the transaction could’ve been routed via Mexico’s USMCA procedures (quick digital submission, clear audit laws), the Argentine side needed wet stamps, hard copies, and local notarization—plus, the ARS kept losing value every day payment was delayed. Losses stacked up purely because their systems and currency couldn’t keep up.
Side Note: Handling Currency Swings—A Personal Blunder
There’s nothing like a live USD/MXN quote flashing on your phone at midnight when you realize you forgot to account for a 2% wire transfer cost. Yep, I did it in February 2024 on a cross-border freelancer invoice. Turns out, while the Mexican peso held steady, hidden banking fees ate up the arbitrage I was hoping for. Lesson: Even with a “strong” peso, the devil’s in the execution.
Summary and Takeaways: Peso (MXN) Is the Regional Overachiever—For Now
So, is the Mexican peso stronger or weaker than other main Latin American currencies versus the dollar? Over the last five years, it’s been hands-down the outperformer. While the real, Chilean, and Colombian pesos all lost significant ground, the Mexican peso bucked the trend—thanks to pretty unique factors like nearshoring and a disciplined central bank.
What’s next? If you’re dealing with cross-border finance or trade in the region, especially with verified trade standards, get familiar with the rules in each country. While the peso might be “strong” today, that hinges on Mexico’s ongoing stability, USMCA enforcement, and diligent paperwork—don’t neglect the small print.
Curious about the next moves of the peso or new trade certification rules? Maybe set an alert for key data releases—my favorite trick is cross-checking Reuters FX Markets and Banxico's official rate updates. And double-check every currency code before making any large transfer—trust me on that one.
Article references: xe.com, Reuters, IMF, USTR, WTO, WCO, OECD, WSJ, personal market tracking, live conference interviews.